Pooled Income Fund

Donors can set up a Pooled Income Fund account by fax or by mail.

To start, a donor makes an irrevocable contribution to the Gift Fund, a public charity, and may be eligible to take an immediate partial tax deduction.

Donors choose up to two income beneficiaries to receive income for life. Donors can name themselves as beneficiaries.

Donors recommend up to ten IRS-qualified public charities to receive the value of the account upon the death of the last income beneficiary.

$20,000 — an initial irrevocable charitable contribution to the Gift Fund

$5,000 — for additional contributions

The income stream generated is variable based on the performance of the underlying investments in the Pooled Income Fund.

Income paid is determined by the Fund's income from interest, dividends, and other ordinary realized income. Capital gains, short and long, and unrealized appreciation are reinvested for possible future income generation.

All income received from the investments of the Pooled Income Fund is distributed quarterly to beneficiaries, proportionate to their share of interest in the fund.

Income can be distributed:

• Concurrently to both beneficiaries, or
• Consecutively to one beneficiary up to their death and then to the last beneficiary

Income received by beneficiaries is taxed as ordinary income.

The amount of the potential income tax deduction is determined under IRS rules by analyzing several variables, including the fair market value of the contribution, the ages and number of income beneficiaries, and the Pooled Income Fund's historical rate of return.

The Gift Fund will provide a confirmation indicating the deduction amount for which a donor may be eligible, and will provide annually IRS Form 8283 for tax reporting purposes.

The Schedule K-1 tax form is provided to help beneficiaries report income received.

The donor may not be required to pay capital gains tax on long-term appreciated property contributed to the Pooled Income Fund.

Learn more about Tax Benefits & Contributions

Cash equivalents and long-term appreciated publicly traded stock, mutual fund shares, and publicly traded bonds may be contributed to the Pooled Income Fund.

The Fund cannot accept restricted or private stock or any type of tax-exempt securities, shares of mutual funds that hold tax-exempt securities, or other types of property that might affect the tax status of the Fund.

Contributions to the Pooled Income Fund account are invested in a pool of Fidelity mutual funds (primarily fixed-income funds).

A donor may recommend up to ten charitable beneficiaries to receive the value of the account after the death of the last income beneficiary. The grants can be designated for a special purpose at each organization.

A Pooled Income Fund donor can designate the Gift Fund as a charitable beneficiary, and after the death of the last beneficiary, a Giving Account is set up.

Donors can change their recommended charitable beneficiaries at any time, and the allocations among them, up until the death of the last income beneficiary.

An advisor should see that the contribution and documentation is reviewed by a qualified tax professional to ensure that there are no unforeseen tax consequences to the donor or their chosen beneficiaries.

The Gift Fund handles all administrative aspects of the Pooled Income Fund, including providing the required annual tax documents for use by donors and beneficiaries, and the calculation and distribution of income earned by the fund and grants to charitable beneficiaries.

The Gift Fund assesses a maximum of 0.5% of assets in the Pooled Income Fund.

The assets of the Pooled Income Fund are invested in mutual funds. Investment expenses vary as operating and management expenses of the underlying mutual funds are subject to variations.